Part 1: How to Deal with Losing

I woke up this morning to find my portfolio down $800. For reference, that's about two and a half days of work. Why did this happen? Well the market is dropping and stocks are taking a beating. Is this the worst one day loss I've ever had? SADLY NO. I have had days down well over 1k.

So let's talk about what I do when these things happen. Part 1 is going to be specifically what I do with my money, part 2 will be what I do mentally, and 3 will be how I cope physically.

Part 1 - Buy everything in sight, about once a month. This might sound crazy, but it really puts things into perspective. Time in the market always beats timing the market, or so they say. This is also known as cost averaging in, which is the best way to keep a level head in a bear market. It's not easy buying a stock at $100 and see it drop to $70. Cost averaging in allows you to buy some at $100, then some at 80$, and then some at $70 which makes you're average cost lower for a stock you want! Basically buying good stocks at a discount.

If you believe a stock has good financials, and good balance statement, and a good future buying them at a discount is a great opportunity. I've been losing thousands of dollars a month to this bear market, but I have also purchased some amazing stocks at a low price. Bear markets are a great chance to change your perspective on the market. See dips as opportunities and runs as a time to take profits. PLUS ALWAYS MAX OUT YOUR IRA! That is for another post though, thanks for reading! #money #entrepeneur #finance #investingtips #invest #financeblog #financewebsite #investing #stockstobuy #blog #bearmarket #bullmarket #whattodo #dollarcostaferage #financialblog